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Living in FortMcMurray purchased home for 1,2M house

Living in FortMcMurray...

Living in FortMcMurray purchased home for 1,2M house evaluation is now 700,000 it is possible to devaluate the house and how to do it

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Answered in 3 minutes by:
3/7/2018
Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,146
Experience: Former IRS Revenue Agent
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I'm Fiona, former IRS revenue agent. I am looking at your question and will get back to you soon. Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP,IMTA

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Dear Customer,

It sounds like it is your primary residence and the house value already reduced.

Are you interested in protesting the property tax?

What would be the "devaluate" purpose. The house is devaluated already.

Regards,

Fiona

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Customer reply replied 4 months ago
I like to know if I am able to deduct portion or all on my personal tax

Dear Customer,

1) The current loss of value for a property prior to its sale is unrealized loss. Unrealized loss cannot be deducted on current tax return. The rule is simple to understand in which, if the property value increased, we are paying tax gain on the increase of value for unrealized gain, either.

2) Even when the primary residence is sold with a loss, it cannot be claimed as loss on personal tax return. Only when the sale of a primary residence is with a gain, it becomes a potential taxable event for capital gain on a personal tax return.

3) Only investment real estate property can be sold with a loss to be reported on the income tax return.

The enclosed IRS website link is enclosed for your further reference.

https://www.irs.gov/newsroom/what-if-i-sell-my-home-for-a-loss

Please feel free to follow up.

Regards,

Fiona

Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 1,146
Experience: Former IRS Revenue Agent
Verified
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